News & Events

Encore sells The Retreat at Windermere Apartments to Institutional Investor


06/08/2014

The Retreat at Windermere (Summerport): On July 30th Encore Fund I closed on the sale of The Retreat at Windermere, a 340 unit apartment community in Orlando, FL,  to an institutional investor for $54.0 million. This comes three years after Encore acquired the 196-acre partially developed parcel, and 24 months after Encore began development and construction of the apartments. Rentals began in 3Q 2013, with the first phase quickly leasing out as rent and lease-up rates surpassed projections. At the time of sale of this property rents were over $1,200 a unit on average. We were able to finalize the sale of this property two months prior our original projected date, with costs in line with our original underwriting, allowing us to exceed our original underwritten IRR and equity multiples. Encore continues to develop 40 single family for-sale homes on the site. 11 have been sold to date. This is an excellent representation of Encore's execution capabilities in multifamily development.

FUND I AND FUND II UPDATE

Encore Fund I

  • 18 acquisitions completed by April 2012: 9 fully realized by June 2014, 9 currently under development or being sold
  • 50% of investor capital has been returned to date
  • All investments except one projected to be fully realized by the end of 2015

Aventura Isles: Encore acquired this 148 acre former golf course in North Miami, FL in June 2010. Encore scraped the golf course and developed a 653-unit master planned community. Sales commenced in June 2012 with 114 homes sold on opening night. Within the first three months, 215 homes were under contract (beating projections by 50%). To date, 614 homes have been sold.

Waverly Terrace: Encore acquired 3 acres of unimproved land in the Silver Lake neighborhood of Los Angeles, CA in October 2011. The site is located just minutes from down town. Encore has completed the land development phase of the project and is currently under construction on the first phase of the 63 unit town home community. Sales are expected to launch in August 2014. To date the project has an interest list of over 1,200 registered potential buyers.

Encore Fund II

  • 20 acquisitions to date, with a peak committed capital requirement of $346M
  • All capital to be fully deployed by mid 2015

Dallas Med Center: Encore acquired an undeveloped 11-acre site just blocks from the Dallas Medical District in the 4th quarter of 2012. Encore built a new 300-unit apartment community which has leased 229 units to date. The leasing center opened in November 2013 and is leasing up ahead of proforma.

Paramount: Previously home to the historic Howard Johnson Hotel, this site is located in Ft. Lauderdale, FL directly across the street from the Atlantic Ocean. Encore acquired the site and demolished the hotel in February 2014. Construction of 95 luxury condominiums is expected to begin in 4Q 2014. Sales began in January 2014 and 39 reservations have already been taken.

McKinley Village: Encore recently completed the acquisition of this 49-acre infill parcel near downtown Sacramento, CA. Encore worked through the entitlement process and intends to build 330 single family homes. The prime infill location and strengthening Sacramento job market should drive strong demand for these new homes surrounded by smaller, 50+ year old homes in the neighboring communities.

1075 Market: Encore acquired this infill site during in the 1st quarter of 2014. It is located in the extremely supply constrained and desirable Mid Market section of San Francisco, CA. Tech employers within a five block radius include Twitter, Square, Pinterest and Box, driving high demand for new urban housing. Encore intends on developing 90 condominiums on the site above ground floor retail.

ENCORE CAPITAL MANAGEMENT

Encore is a vertically integrated real estate investment and development firm founded in 2009 by three managing principals each with over 20 years experience in US real estate investment, development, and asset management. Encore currently manages over $750M of investor equity commitments across three investment vehicles, with 45 property investments comprised of over 15,000 homes, apartments, and lots representing over $1.5B in assets under management. Encore is currently raising $500M for it's third vehicle, Rescore, which has had its initial closing and is expected to have its final close in fall 2014.

Please contact any of the undersigned for more information about Encore, or visit us at www.encorefunds.com

Art Falcone - art.falcone@encorefunds.com - - (561) 961-1256 (o)

Bill Powers - bill.powers@encorefunds.com - (424) 208-8472 (o)

Tony Avila - tony@encorefunds.com - (415) 561-0600 (o)



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